Competitive Intelligence

Interbrand’s "Best Global Brands 2004"

Interbrand released its 2004 ranking of the Best Global Brands by Value for the next issue of BusinessWeek:

Based on its high brand loyalty and strong sales of the iPod, Apple (No. 43) is the biggest mover with a 24% gain in brand value. Other big gainers include Yahoo!, No. 61 (up 17%); Amazon, No. 66 (up 22%); Samsung, No. 21 (up 16%); and HSBC, No. 33 (up 15%). Online auctioneer eBay debuts on the list this year at No. 60. As BusinessWeek notes, even established brands such as Coca Cola (No. 1) and Microsoft (No. 2) “have started to recognize the need to nurture stronger ties with consumers.” Microsoft has started mini-trade shows in airport lounges and Coca Cola has opened hip "Coke Red Lounges" for teenagers in suburban malls.

Meanwhile, BusinessWeek tried to crack the code on "cult brands" such as Apple and Starbucks and why the online world and mass customization have empowered consumer choice more than ever before:

A customer spurned, the logic goes, is a customer lost. But these days the relationship between brands and their customers has become much more complex. For one thing, consumers simply know more than they used to. The Internet opens up a wealth of information, allowing for instant price and quality comparisons. But consumers demand more from the brands they love than simple reliability; passionate consumers want their brands to become a form of self-expression. Increasingly, consumers are customizing products and services to achieve that -- whether it's tailoring colors on a pair of sneakers from Nike Inc. or adding items to their personal to-watch list on eBay. Instead of arms-length customers, they're beginning to act like and feel like owners or members of a community. They no longer passively consume. Through the Internet, they can talk back and talk to one another. They can ignite a groundswell of positive buzz or spawn a revolt. As Peter Weedfald, senior vice-president for strategic marketing and new media at Samsung Electronics North America, puts it: "Consumers are empowered in a way that's almost frightening."

This seismic shift in clout from companies to their customers is creating opportunities, especially for younger brands that grew up with the Internet and have become adept at building user communities. Meanwhile, some traditional brands, such as Coca-Cola and Microsoft, are struggling to retain their mammoth leads in a market where consumers increasingly resist what they see as bland ubiquity and a surfeit of power.

Looks like even the biggest of companies, no matter how strong their relative global power of brand, need to keep working to stay on top. I did find it interesting that, of the top 10, eight were U.S. companies, and overall, of the top 100, 58 were U.S. firms.

- Arik

Posted by Arik Johnson at July 28, 2004 11:21 AM | TrackBack